Opinions expressed by Entrepreneur the contributors are theirs.
Silicon Valley media leaders such as Google, Meta, Twitter, and TikTok operate primarily through the sale of advertising space as a major source of revenue. According to their second quarter earnings reports, not only are these giants slowing down and losing ad sales, but their ad customers are in a state of strategic restructuring as the effects of the recession have begun to negatively impact their spending budgets. annuals and their return on investment. Over the past two months, we’ve seen this trend spread from large enterprises to organizations of all sizes, with July seeing the worst decline in ad spend in two years.
In an already oversaturated market, traditional digital advertising has become increasingly expensive as a means of customer conversion. With access to the same ocean of information, targeting has never been so effective at establishing a match. But, in a free market, competition is ultimately determined by who can spend the most. The more you spend, the more often you will see your product.
However, with the economic pressures now facing consumers and rising inflation cost projections, shopping trends are changing at a difficult pace for e-commerce analytics. Advertiser revenue suffers. The changing market for online consumer spending is shifting from a growth economy to a more conservative one.
The digital advertising market is relatively young and still has room for growth as technology evolves. This is the first time that its market can undergo significant stress tests. It will tell how quickly ad agencies and marketing departments need to adapt. Here are some predictions of what we might see from the digital ad space over the next year.
Related: 6 Proven Business Marketing Strategies to Grow During a Recession
Video advertising will rule
Content-connected video advertising has proven to be effective marketing, with digital video viewers retaining 95% of messages compared to the same text message. With today’s viewers spending more than 100 minutes a day watching digital video and 92.6% of internet users worldwide watching some form of digital video every week, the digital video market has never been stronger. .
Brands will invest heavily in influencer development
Leading digital video consumption are music videos, comedy specials and social commentary. All three share the common theme that their content comes from influencers. Influencer marketing is already standard and growing brands are investing in the development of an influencer. By signing exclusives with the influencer – or creating the influencer using the extensive influencer market research available – and promoting influencer visibility, brands can build entire embodied lifestyles by their influencers.
In these scenarios, advertisers partner with influencers to create content that innocuously integrates their product into the video. It takes less work and time to encourage commerce by seeing oneself in a personality one admires than to prove the merits of a product. With a strategically crafted consumer audience that engages content, brands generate competitive sales funnels based on turning wants into needs.
Streaming services will become the most invested platforms
Over the past two years, the streaming market has grown and is expected to continue growing over the next decade. With more variety of content options than ever before and what seems like an endless list of new programs being sent out for development, there truly is something for everyone.
Streaming services run on as many digitally-enabled personal devices as technology permits. We constantly engage with them. In 2021, 78% of US consumers used a subscription streaming service.
Between its rapid growth, affordability, and range of data collected, streaming’s ability to associate a brand with content relevant to its target market is particularly competitive. Due to the specific lock of streaming advertising to programming that perfectly matches a brand, this infinitely populated market cannot see oversaturation, as each program reflects a micro-market, which can be dominated by slowing infiltration and expanding the market space with similar programs.
Related: The 6 best advertising strategies for small businesses
Personal messaging will increase as data hygiene improves
It has become increasingly reasonable to sort and format data in a way that better connects a brand to its customers due to access to the use of habit tracking technology, cookie sharing and the ability to purchase consumer data. Integrating AI into customer success will help piece together digital consumer profiles by comparing, collecting and analyzing data.
Understanding digital profiles would require research team departments to implement a single sales-focused AI program. Informed AI can help create digital sales stories that have some degree of personalization for their target buyer. AIs are already developing narratives, and while there’s still plenty of room for improvement, setting specific parameters can help create concise, personalized storytelling. The relationship of the digital profile could then be managed, tracked and updated by AI and documented on an ongoing basis for the purposes of continuity and improvement of the relationship.